The Canadian Real Estate Market in 2022
Most Canadian real estate companies have fared well during the COVID-19 pandemic. So, most are optimistic about 2022, due to the promising signs of strength for several asset classes. With so much force for change reshaping Canadian markets, and rising concern about housing affordability, it becomes necessary to think differently.
We must re-examine the basic demand and supply relationship, while accelerating transformation and innovation. Many analyses have shown that the best bets in the Canadian real estate market include warehousing and fulfillment, rental housing and uses related to health care and life sciences.
Reviewing the Shifting Market
We’ve seen significant workplace shifts ranging across the real estate market. While Canadians have diverging opinions on how permanent the changes are, and what the future of work will ultimately be, there’s no doubt that the workplace will be different from what it was before 2020. This has implications for business decisions across key asset classes, as well as for the users of real estate themselves.
Key trends include a changing landscape for offices, different migration patterns, and a stronger focus on master-planned communities. In Canada’s residential market, low interest rates, increased savings by many Canadian families during the pandemic, and the desire for more living space has helped boost the demand for housing. Consequently, home prices and affordability challenges have both increased.
As 2021 comes to an end, we’ll examine two factors as we cross the threshold into a new year: rental rates and price appreciation.